Wrongful Termination Claims

As a small business owner in California, ensuring that your hiring and termination practices comply with the law is crucial to avoid costly legal disputes. A wrongful termination claim arises when an employee is dismissed in violation of state or federal law, including breaches of contract, discrimination, retaliation, or other unlawful practices. Getting it right the first time is essential, as mishandling a termination can lead to expensive litigation, reputational damage, and financial consequences for your business.

Why It’s Critical to Handle Terminations Correctly:

  • Avoid Lawsuits: California has some of the most employee-friendly laws in the nation, and a wrongful termination lawsuit can result in significant penalties, including back pay, punitive damages, and attorney fees.

  • Avoid Discrimination Claims: Claims based on wrongful termination can often involve allegations of discrimination or retaliation, which could expose your business to higher risk, especially in California where employment laws protect workers' rights.

  • Preserve Your Business Reputation: The reputation of your business can suffer if an employee claims they were wrongfully terminated, even if the accusation is false. A well-documented and fair termination process can help protect your business from this risk.

In McDonnell Douglas Corp. v. Green (2023), the California Supreme Court reaffirmed that employers must provide clear evidence of a legitimate, non-discriminatory reason for termination. This decision underscored the importance of having thorough documentation to justify employment decisions. Small business owners are encouraged to implement clear, consistent termination policies to protect against these types of claims.

Getting the termination process correct from the outset can save your business time, money, and legal headaches. It’s essential to seek legal counsel before making any difficult employment decisions to ensure your actions are in full compliance with the law.

Don’t navigate this alone. Contact us today.